Introduction: Tech Terrain
Hey everyone, Tanner Chidester here, CEO of Elite CEOs. Excited to share my recent global adventures and delve into my experiences in the tech and app development world. Get ready for insights into successes, pitfalls, and invaluable lessons for your business ventures. Join me as we explore the Tech Terrain together.
Quick answer: What should a non technical founder know before building a software app?
Start small, align incentives with your developer, and build for customers you already have. My first app for trainers stalled because one CTO from a headhunter could not carry a project that big, and I lost a lot of money. My second build took three months with a US based developer paid through profit share. That cut my risk.
- One hire cannot carry a huge tech project, which is why my first app for trainers never got finished.
- Learn enough technical language to track progress, because frontend and backend changes affect each other.
- Paying a US based developer through profit share on a three month build cut my risk and aligned incentives.
- Bootstrap when you can, since VC money can cost you control.
- Build high ticket software for a niche, starting from what existing customers need.
“Get ready for insights into successes, pitfalls, and invaluable lessons for your business ventures. Join me as we explore the Tech Terrain together.”
The Initial Steps: Hiring and Challenges
About two years ago, I ventured into creating an app for trainers. My first step was hiring a CTO through a headhunter. The goal was to keep costs low, but I quickly learned that having one person build a massive project like this wasn’t feasible. Over time, we made progress but never reached completion, leading to a significant financial loss. It was a classic case of biting off more than we could chew.
Tech Terrain: Key Takeaways:
- Project Scale: Avoid overly ambitious projects that require extensive resources unless you’re ready for a significant investment.
- Technical Understanding: Ensure you have a basic grasp of tech language to track progress effectively.
- Frontend and Backend: Acknowledge the complexity of tech development, where changes in one area can significantly impact another.
Pivoting Strategies: New Approaches
Learning from these challenges, I adopted a different strategy for my next tech venture. I leveraged my network to connect with a trustworthy US-based developer. Our deal was structured uniquely: a three-month timeline to build the product, with compensation tied to a share of the profits. This approach minimized my risk and provided an incentive for the developer.
Crucial Insights:
- Align Incentives: Craft deals that align your goals with those of your developers.
- Bootstrapping vs. VC Funding: Whenever possible, bootstrap. VC funding can lead to loss of control and aligns poorly with long-term personal goals.
Building for Success: High Ticket and Niche Focus
For those considering a tech venture, I recommend focusing on high-ticket items that offer significant value to your customers. Your product should ideally replace more expensive tools they’re currently using, providing both cost savings and enhanced functionality. Additionally, targeting a niche market can help you stand out from larger competitors.
Leveraging Existing Customer Bases
An effective strategy is to look at your current customer base
and identify their needs that can be met with technology. This approach not only creates a product that has a ready market but also ensures you are building something that adds real value. My current project is closely guarded, but it’s developed with this philosophy in mind.
Tech Terrain: Final Thoughts
In the world of tech and app development, the path is rarely straightforward. It’s filled with learning curves, adjustments, and sometimes, significant financial stakes. However, the rewards can be immense if approached correctly. Remember, start small, stay focused, and leverage your existing relationships and customer base.
I hope sharing my journey helps you navigate your own tech ventures more effectively. If you have any questions or want to discuss your ideas, feel free to drop them in the comments. Let’s keep pushing the boundaries and innovating!
Cheers,
Tanner Chidester
Frequently asked questions
Should I hire a CTO or a developer on profit share?
Profit share worked better for me. My first app had a CTO I hired through a headhunter to keep costs low, and the project stalled and cost me a lot of money. On my next build I partnered with a trusted US based developer whose pay was tied to profit share. He only won if the product won, so we were aligned.
Why do app projects fail for first time founders?
Usually the scope is too big for the team. My first app for trainers was a large project handed to one CTO, and it never got finished. I also did not understand enough of the technical side to track progress. Be careful with ambitious builds and learn enough to know when work is actually moving.
Should a small business owner bootstrap a software product or raise VC money?
Bootstrap when you can. VC funding can cost you control of the company, and investors' goals may not match yours for the long term. When you fund it yourself and keep the build small, you keep the decisions. My second venture was built in three months on profit share instead of outside money.
What kind of software product should an entrepreneur build?
Build a high ticket product that replaces more expensive tools, aim it at a niche, and start with your existing customers. They already trust you and can tell you exactly what they need. That lowers your risk and gives you buyers on day one instead of hoping strangers show up.
